The 27-year-old suspected bomber who had wires attached to him was armed with a pipe bomb and a battery pack, sources told New York Post, according to which he was taken into custody after the device partially detonated.
Former New York Police Department Commissioner Bill Bratton told MSNBC that the man was inspired by the Islamic State terror group and originally came from Bangladesh.
New York Mayor Bill de Blasio said the device that exploded in the New York City subway was an attempted "terrorist attack".
"A total of 4 injuries reported at the scene of an explosion at Port Authority," the New York Police Department said, adding that all injuries are non-life-threatening.
The suspect is reported to have sustained minor injury.
President Donald Trump was briefed on the New York explosion, White House Press Secretary Sarah Sanders said.
Earlier, the New York Police Department tweeted that it was responding to reports of an explosion of unknown origin at 42nd Street and 8th Ave, Manhattan.
The place is New York Port Authority, a busy bus terminal. It also has metro stations.
"The A, C and E line are being evacuated at this time," the NYPD had said, adding that the information is preliminary.
The New York Fire Department received call around 7.19 am.
"I was exiting the Port Authority and the National Guard was running towards something shouting 'Go, Go, Go'," commuter Keith Woodfin tweeted, according to New York Daily News.
Designer Chelsea LaSalle tweeted that she was "stuck in a running stampede at port authority bus terminal due to bomb scare. cops EVERYWHERE.
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